Using ETFs to Follow the Smart Money

Global X also recently launched the Global X Guru Activist Index ETF (NasdaqGS: ACTX), which takes the guru ETF concept a step further by focusing on companies where an activist investor, such as Bill Ackman or Carl Icahn, is angling for change. [Unleash Your Inner Icahn With This New ETF]

The AlphaClone Alternative Alpha ETF (NYSEArca: ALFA) is another option to track hedge fund picks. ALFA utilizes a “Clone Score” methodology to pick alpha, or outperformance, potential from institutional sized investors.

Alternatively, while the IQ Hedge Multi-Strategy ETF (NYSEArca: QAI) does not replicate hedge fund picks, QAI does try to provides a diversified mix of alternative strategies that institutional investors may implement, such as long/short equity, global macro, market neutral, event-driven, fixed income arbitrage and emerging markets. [Making Your ETF Portfolio Stable In A Volatile Market]

For more information on ETFs and hedge fund strategies, visit our hedge fund category.

Full disclosure: Tom Lydon’s clients own shares of XLP.

Max Chen contributed to this article.